So tax credits/benefits

What else would you classify them as?

Well MIRAS was a mortgage relief tax beak I believe - however tax credits can be claimed whether you have a mortgage or not. Equally you dont have to be married ie like the married man tax allowance so I dont see how you could compare it.

I guess it is a benefit - there are certain things you have to doo qualify to get it, and I suppose it is 'unearned' income. However, what difference does it make if its viewed as a benefit or not? If you qualify and want to claim it, then claim it, doesn't matter what others opinions are.

A tax allowance? As in married persons tax allowance....

I see that Tax credits are different as there are scales and it definitely benefits the lower paid or families, but surely the Government can't just abolish something like married persons tax allowance and not replace it?

Maybe they can...

I don't really know what to classify them as, I think of it differently than Income Support for example though.

Well, they are a benefit in the sense that they are only for people under a certain income. I don't think any stigma attaches to them though (at least not in sane people's minds)- some people are sniffy about benefits as the implication is that one isn't working for one's money and that obviously isn't the case with tax credits. They are just a mechanism to keep the net income of lower earners a bit higher without having to lower the basic rate and thus decrease tax revenue. Awfully inefficient though.

Nothing to do with MIRAS etc at all.

How much did people get on married persons allowance? It has been abolished for a for years now hasn't it ? I can't remember much fuss about getting rid of it so assumed it musn't of been much.

I guess it is different from income support as I believe that at least one person in the house has to be working in order to claim Tax credits.

Tax Credits are a means tested "benefit" in the same way as Income Support etc, they are just assessed on a yearly basis and managed by HMRC not the DWP.

Child tax credits specifically took the place of additional income support for children so aimed at very low income families and act as a passport, in the same way that Income Support did, to free school meals, NHS benefits etc.

Working Tax Credits are more generous and can bring some people into "benefits" who may not have got any additional help before their introduction, especially low paid people without children and working disabled.

To be fair MIRAS isn't a good example, but I think Married persons tax allowance is comparable as that only benefited certain groups of people too.

Tax Credits are not a form of reduced tax or tax relief.

It is a menas tested payment to families / indovidulas on a low income, some working, some not working, and is paid on top of earnings and other income.

It cannot be compared to any previous form of tax relief scheme. It is a means tested benefit, dressed up by the government, for whatever reason, to look like something different.

So the government just did away with any previous tax relief?

I see what you are saying about tax credits being means tested but I don't really think of a joint salary of up to 60k as 'low income'....

I see it as benefits, you have to apply for them and not everyone is entitled.

Tax credits go on last years income. So technically some one could be earning £60k this year but if they only earned £10k last year they may well qualify.

You obv have someone in mind when you are talking about this. If they are self employed maybe they haven't declared their true earnings to Inland Revenue and this is why they qualify. Obv wrong but would explain things.

"A" government did, I don't think it was this Labour one.

Disagreeing what makes a low income doesn't change the fact that tax credits are means tested. I don't know how MIRAS or Married Couples tax allowances worked (beofre my time), but I assume they were universally applied.

You would barely get anything on £60k though surely. On the average wage (about £26k ish) you only get £6 a week if you have one child. You get nothing if you have no children an earn above £17k

I just put £60k in the calculator and you would get just over £100 for the whole year

Those amounts are with no childcare costs added in

I see them as a benefit as they are means tested, thus not applicable to everyone. Surely they are specifically to help people on lower incomes?

L
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I think I am just surprised at some peoples (not saying you) attitude towards tax credits. Obviously single people weren't eligible for Married persons tax allowance, but I don't think it was thought of as a 'benefit'.

As I said before I thought tax credits has replaced a form of tax relief - that obviously isn't the case though.

But with married persons allowance, every man who was married could claim it reardless of income ? whereas tax credits have a number of qualifying requirements. I don't understand why you are trying to make any sort of comparasions as they are both completetly different.

i don't think thinking of it as benefits is a negative attitude, its just the way i see it.

I saw the comment that made you post this and that comment was making it seem that it was a bad thing to be claiming it and other benefits, well thats how I read it anyway

That was the point of my post, maybe it wasn't clear. I was under the impression that tax credits had replaced married persons tax allowance (and of course included single parents etc, so had probably changed beyond recognition).

I gather that isn't the case, so there was really no point to my post as I thought it was unfair that one was referred to as a tax relief and one was a benefit.

I don't think I am explaining myself very well. Apologies.